GROWING TRENDS OF THE PHILIPPINE REAL ESTATE MARKET THIS 2019
We can foresee different opportunities along our way if we focus on the growing trends of the Philippine Real Estate market for a brighter and successful path of our business.
Here are some of the key trends that shaped the industry in 2019 as flexibility continues to knock on for the estate market wherein it clearly means that there is a rise of flexible workspaces since a strong demand and preference of tenants can be seen.
Continued rise of different enterprises and workspaces
The Manila’s flexible workspace stock expanded by at least 10 percent per annum wherein there is a rising demand within malls, hotels, residential condominiums and dormitories for professionals. According to Colliers international, over the years, there will be more entry of multinational companies and outsourcing firms looking for plug-and-play offices. These will continue to rise from 2019 to 2021 since a lot of young professionals are looking for living spaces near their workplaces to avoid heavy traffic. As tight vacancy looms into 2019, rents have been raised by an estimated 9%.
Luxury condominium demand remains strong
The condominium investment in the Philippines remains strong because of the low prices and rise of demand from affluent Filipinos, foreign investors and offshore gaming. The price breaches up to P400,000 per square meters on the project between SM Prime and Federal Land that will be built along Ayala Avenue. Developers are also cashing in on the thriving property market by acquiring parcels of land outside of the more established business districts.
Strong demand in the market due to raised residential prices
The most expensive condominium project is now priced at approximately PHP550,000 (USD10,400) per square meter. Due to rise in the residential prices, there is a strong demand in the pre-selling market and most residential developers modify their projects to cater Chinese offshore gaming employees and local professionals. Amidst a modest increase in supply, rents remain steady this year.
Sustained demand for home furnishings of foreign investors
Given that the condominium living in Manila is quite raising, many foreign investors and tourists focused on furnishing their homes wherein there is already a 30 to 80 percent rise in this sector.
Food and beverage will continue its dominance in retail space
The F&B segment remains dominant which contributes to the greater retail space absorption across the country’s capital. According to Collier, greater absorption of retail space will be seen in some areas like Ayala Malls Capitol Central, Gaisano Grand Mall and other branches in Manila with a mix of local and foreign F&B firms, footwear and clothing shops. Through this, national developers are responding in the rising retail demand by bringing interesting foreign retailers and aggressively renovate spaces to improve the consumers’ retail experience.
Strong and high demand on the spaces of the investors and tenants this 2019 is the current trend of the Philippine real estate market. We continue to see property firms taking a more aggressive approach in exploring parcels of the developable land.
